Vietnam’s stocks rose the most among Asia’s largest equity markets on speculation the government will take steps to help companies cope with a slowing economy.
The VN Index rose 1.9 percent to 434.19 at the close in Ho Chi Minh City, the highest level since Aug. 20. The gauge gained for a ninth day, the longest winning streak since Jan. 19, 2012. Vingroup JSC, the country’s largest listed property developer, surged 4.4 percent to 83,500 dong. Bao Viet Holdings, the biggest Vietnamese insurer, jumped 5 percent to 46,600 dong.
The State Securities Commission has proposed measures such as removing the cap on overseas investment in some industries and allowing foreigners to buy non-voting shares, Thoi Bao Kinh Te Vietnam reported on Jan. 4, without saying where it got the information. The government will seek to address economic challenges in 2013, Prime Minister Nguyen Tan Dung said Jan. 1.
“The market is being cheered up by potential government measures,” Hoang Thach Lan, head of the brokerage unit at Ho Chi Minh City-based MHB Securities Co., the equity investment arm of Mekong Housing Bank, said by phone. “There may be a correction in the first half of this month, but overall, the market will continue its uptrend.”
Vietnam is struggling to boost an economy that expanded at the slowest pace in 13 years in 2012 as a slump in bank lending crimped domestic demand, adding pressure on the government to revamp the financial system. Dung has identified bad debts at banks as an obstacle to economic growth.